It's the story of a
public transit system in Michigan: the more successful it is as it keeps fares
low to lure passengers, the more money it appears to lose.

In Lansing, the city's bus system has seen its ridership jump to record
numbers from 9.3 million in 2005 to 11.3 million in 2008. Yet its losses have also jumped
from $28.6 million to $33.3 million during the same span.

State Rep. Dave Agema,
R-Grandville, has introduced House Bill 4185 that would require bus transits to
have fares cover 20 percent of their operating costs. Agema said his bill has
been stuck in committee since it was introduced a year ago.

Transit was a big beneficiary
of the federal stimulus. According to the state, Michigan has received nearly
$100 million in federal stimulus funds to be spent on transit authorities.

"I'm not asking them to be
profitable," Agema said. "Right now, there is no incentive to be efficient.
It's, 'Let's just keep the monster going and lose more money.' "

For Lansing's Capital Area
Transportation Authority, fares cover 15 percent of the total operating costs,
according to CATA Spokeswoman Debbie Alexander.

Needing more money to sustain
operations, CATA asked for an increase in its millage in 2008. It was approved
for a 0.787-mill tax increase for five years ending in 2012. For a home valued
at $100,000, it meant about an extra $39 in taxes per year.

In Lansing, fares are normally
$1.25 a ride, but students ride for 60 cents.

Mackinac Center analyst Jack
McHugh said the current public transit model is broken and that reforms are
available that will benefit both users and taxpayers.

"By eliminating protectionist
regulations that restrict alternatives," McHugh said, "empty buses driven by
public employee union members can be replaced by private sector innovations
like jitneys, commercial van pools, 'call-and-ride' services, car-sharing and
more. This will improve service for transit users at a much lower cost."

Alexander said increasing
fares risk cutting off service to the low income riders.

"You could only drive fares up
so far before you are unable to serve the population that uses the bus," she
said. "Nowhere in the world is any public transportation fully supported by
fares. I think there is a fine line between making it valuable and marketable
and overpricing it and making it an elite service."

Agema said he's not asking
fares pay for the entire cost of operations.